CHUANGLIAN HOLD (02371) issues profit warning, expecting a loss of not less than approximately 70 million yuan for the 18 months ending June 30, 2024.

CHUANGLIAN HOLD (02371) announced that compared with the net profit of approximately RMB 1088.4 million for the twelve months ending on December 31, 2022, the Group expects to incur a net loss of not less than approximately RMB 70 million for the eighteen months ending on June 30, 2024. The main reasons for the Group's performance expectations changing from profit to loss during the reporting period are due to the comprehensive impact of the following factors: The education consulting and online training and education services division is expected to incur a loss for the eighteen months ending on June 30, 2024, compared to a profit of approximately RMB 3737.1 million for the corresponding period, mainly due to a decrease in revenue from online training and education services (with high gross margins), an increase in costs for promoting on-site training services, and a decrease in compensation income of approximately RMB 2200 million; and a decrease in the contribution of profits from financial leasing services of approximately RMB 700 million after selling certain subsidiary companies in December 2022.